Can you change your debt management company
If you are unhappy with your debt management company, you can change to a different one at any time.
Included in this article:
- How to change your debt management company
- What are the potential problems if you move?
- Can you switch to a different debt solution
Prefer to speak to a person? Call 0800 044 5407 or complete the form below and we’ll call you
How to change your Debt Management Company
You may be unhappy with your current debt management company for a number of reasons.
Perhaps interest and charges are still being added to your debts. Maybe you are still getting hassle from your creditors. What if you have taken out new debts but your provider won’t help you with these?
Whatever the reason, if you want you can change your company.
You are not legally bound to your current provider and you can stop paying them at any time. This will cancel the debt management agreement you have with them. You can then restart your payments with a new company.
Your current provider can’t stop you from moving elsewhere and they can’t charge a cancellation fee.
What are the potential problems if you move to a new DMP company?
When you stop paying your DMP, there is a possibility that your creditors will start chasing you again.
This problem can be kept to a minimum or avoided completely if you appoint a new company to take over quickly. It should be possible for them to get your new plan up and running within a month.
In these circumstances no payments are missed at all and you don’t risk any creditor action.
But if you delay or decide to have a break from your plan and use the money for something else, collections action will eventually restart.
It is best to choose the new debt company you want to move to in advance. This will keep any disruption to your payments to a minimum and avoid hassle from your creditors.
Can you switch to a different debt solution?
If your DMP is not working for you, this is always a good time to review your options and consider whether an alternative solution might be better.
Perhaps you are happy to take over the management of your plan yourself. There is no reason why you shouldn’t do this from now on if you want.
Alternatively you might be wondering whether a DMP is still the right solution for you. Based on the amount you currently pay each month, you could be paying it for a very long time. In these circumstances changing to an IVA might help you become debt free faster.
Your circumstances may have changed and now you are unable to afford to keep up your payments. If you are living in rented property, you should get advise on whether bankruptcy might be better for you. This would mean you wouldn’t have to make any further payments where you can’t afford to.
Want advise about whether your DMP is still the right solution for you? Give us a call (0800 044 5407) or complete the form below and we’ll call you.
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